Altcoins Talks - Cryptocurrency Forum
Cryptocurrency Ecosystem => DeFi tokens => Topic started by: Fighter on September 19, 2022, 05:22:37 AM
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DeFi enables any two parties to securely and directly transact without involving an intermediary or central authority. The result is that many more people can access financial services at lower costs or receive better interest rates than those offered by traditional financial institutions.
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DeFi enables any two parties to securely and directly transact without involving an intermediary or central authority. The result is that many more people can access financial services at lower costs or receive better interest rates than those offered by traditional financial institutions.
I would argue your statement is not entirely correct.
To clarify - Enabling any two parties to securely and directly transact without an intermediary is a trait of the blockchain itself.
What defines DeFi is the reinvention of all those financial instruments the old money system has - borrowing and lending, coverage and insurance, leverage, arbitrage, exchanges... but also new ones, like staking. It's important to underline, that these are not exact copies of TradFi, but reinvented crypto-native iterations of these tools, while staking doesn't exist and is not possible in TradFi.
More importantly, lower costs and better interest rates are not at all given in DeFi! Nothing makes it impossible to be worse, it's merely incentivized to be better. But this can easily get worse than TradFi if a DeFi protocol goes out of balance. E.g., DeFi on Ethereum is hell of a lot more expensive because of the gas fees, compared to a TradFi network like VISA.
So, lower costs (depending on the blockchain, mind you) and better interest rates are just a side effect from the annihilation of centralized intermediaries, which is the main purpose of DeFi.
By decetralizing finance, the blockchain destroys corruption and control. It's that simple :) Hence "financial freedom" - it doesn't mean getting ultra-rich and fast... it means you are free to do financial conduct without any authority's supervision or mediation.
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Because the Defi == Freedom. Without Defi crypto become the same sh$# as regular banks. With limits and deanonification
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One of the many reasons why DeFi tokens are good is that they are always hyped. It has a good amount of popularity. People are currently showing interest in investing here. Those who expect good amount of profit in very short period of time can invest in these tokens. But you must be careful for this. Wait for the right time then you can start investing and hold. Until profitable.
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DeFi (Decentralized Finance) offers several vital benefits for being a good identity:
The main unique feature is Decentralization. DeFi operates on blockchain networks, allowing for decentralization, which means no central authority controls the system. This can lead to increased transparency and security among the investors.
DeFi projects often aim to provide financial services to anyone with an internet connection, regardless of geographical location or financial status. This can promote financial inclusion to developed and underdeveloped countries.
But from my opinion it's essential to conduct thorough research and exercise caution when participating in the DeFi space.
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DeFi (Decentralized Finance) offers several vital benefits for being a good identity:
The main unique feature is Decentralization. DeFi operates on blockchain networks, allowing for decentralization, which means no central authority controls the system. This can lead to increased transparency and security among the investors.
DeFi projects often aim to provide financial services to anyone with an internet connection, regardless of geographical location or financial status. This can promote financial inclusion to developed and underdeveloped countries.
But from my opinion it's essential to conduct thorough research and exercise caution when participating in the DeFi space.
⚠️ Publishing text written by an AI bot is a type of plagiarism. Anyone who is interested in the bot’s opinion can ask the bot a question himself, so there is no need to publish the bot’s texts on the forum.
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For me, DeFi is like a new way of managing finances without unnecessary complexities. It's like having a bank right on your smartphone that works for you, not against you. It provides people with the opportunity to access more favorable conditions for lending, borrowing, and investing, which were previously unavailable without the involvement of banks or other financial institutions. DeFi offers more freedom and control over finances, which, in my opinion, is crucial in today's world.
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DeFi is good since it offers several advantages that make it appealing to users, such as the security, transparency and accessibility, empowering individuals to take control of their finances and participate in a more open and inclusive financial ecosystem.
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DeFi is good because defi application are available to anybody with an internet connection, no matter what their location or banking status, they simplify access to financial services. It reduces the dependence on conventional financial intermediaries by providing confidence, safety, and control over personal asset. Aside from that defi platform encourages innovation efficiency and inclusivity in the global financial system because of their programming and interoperability. This will help a lot of users.